seems there is potential for it to drop to the low from Sept/ Oct which was 14.40 or so. Too bad none of the key people ever seem to buy stock as that would be a good gauge. I've been trading RES from prices over 24 and it is a good trading stock ie it moves around quite a lot. Selling some puts in that 15 area might help offset some of our losses and I will probably sell some calls as well. The June 15 puts might get you $1.50 ish so net long at 13.50 where I like my chances, you could buy the 12.50 as a floor and then the put spread would be a credit of $90 bucks or so.Paid $90 bucks with only that difference ($250) as a max loss so good risk reward. As to buying more common I'll wait to see that 14 area.
That said pre market is looking good.
Don't they have a stock buy back going? split, div increase, stock buyback...am I missing something ? Oh yea, possible buy out.
If you are sure that the stock will sell down to $5.00, how may put options have you purchased and for what monthly expirations and at what strike prices?
Seems to me you'd want to load up on puts and make a fortune (assuming you have the courage of your convictions).
Is your money on the line with this prediction, or do you just enjoy typing negative posts? It's better have a positive attitude and see potential big drops as an opportunity to make big money on the short side.
Just my opinion, but that's how I trade - use options - both directions, depending on the situation.